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| Death Benefit | | The amount paid to the beneficiary of a life insurance policy upon the death of the insured. Check out Products section for more information. |
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| Derivative | | A financial instrument whose return is "derived" from, or based on, an underlying security, contract, asset, or index. While there are numerous varieties of customized derivatives, the most common forms are futures and options. |
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| Disability Income Insurance | | This is a type of insurance that provides for payments should the insured be unable to work for a period of time. |
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| Diversification | | The practice of distributing your assets among different types of financial instruments in accordance with your planning strategy. For instance, if you are near retirement age, your allocation of savings might focus more on "conservative" vehicles such as bonds, certificates of deposit, fixed-rate annuities and cash value life insurance, since these are less vulnerable to short-term risk. For more on this topic, see our seminar entitled Smart Investing: Step By Step. |
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| Dividend | | A share of a company's profit that is distributed to its investors. Offering a dividend is a voluntary practice that companies often employ to provide an additional incentive for stockholders. Owners of stock or permanent life insurance may earn dividends based upon the issuing company's financial performance in any given year. |
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| Earned Income Tax Credit | | This is a federal tax credit offered to working adults who fit within certain qualifying guidelines. It is generally designed to offer limited income workers tax relief to offset their contributions to Social Security. |
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| Educational Savings Plan (529) | | A relatively new, flexible vehicle that enables you to save large amounts (in excess of $200,000 per student) tax-deferred, to cover educational expenses. Qualified withdrawals are now exempt from Federal income tax. |
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| Electronic Funds Transfer (EFT) | | Financial transactions, including payments, deposits, etc., that are conducted using electronic or computer-based technology. These may be manual, such as ATM withdrawals, or automatic. |
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| Equities | | See stock. |
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| Estate Planning | | The process of putting together a detailed blueprint for administering the disposition of your assets after your death. Estate planning is typically based on the establishment of a last will and testament, and involves financial and legal arrangements designed to fulfill the provisions of that document in accordance with your wishes. |
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| FDIC (Federal Deposit Insurance Corporation) | | The agency established by the federal government for the purpose of insuring bank depositors. Each depositor is protected against losses (due to bank failure, etc.) up to a total of $100,000. |
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| Freddie Mac | | Popular name for the Federal Housing Loan Mortgage Corporation (FHLMC), a corporation chartered by the U.S. government that purchases mortgage loans from issuing institutions, such as banks, and distributes mortgage-backed securities through private dealers. |
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| Futures | | A common type of derivative. Futures are contracts to accept or make delivery of a particular commodity by a certain date. |
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| Ginnie Mae | | Popular name for the Government National Mortgage Association (GNMA), a wholly government-owned corporation that purchases federally insured mortgages from lenders and issues mortgage-backed securities. |
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| Global Fund | | A type of mutual fund that incorporates investments from all around the world, including the United States (unlike international funds, which do not include U.S.-based investments). |
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| Gross Income (or Gross Earnings) | | Your total earnings before federal taxes and adjustments are deducted. |
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| Growth Fund | | A type of mutual fund that concentrates its investments in companies that are exhibiting substantial growth in earnings. |
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| Guaranteed Acceptance | | An agreement to provide insurance coverage to customers who meet certain basic qualifications for the particular policy in question. See our Products section for more information. |
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| Guaranteed Renewal | | A commitment on the part of an insurance provider to renew coverage (within the limits of the policy contract) regardless of any change in the health status of the policy owner. Many Term Life policies feature guaranteed renewal. See Products section for details. |
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